Michael Kors Holdings Ltd Is a Sell; Strong Momentum from Option Traders

 Michael Kors Holdings Ltd Is a Sell; Strong Momentum from Option Traders

In today’s session Michael Kors Holdings Ltd (KORS) recorded an unusually high (7,516) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the December, 2016 put, expecting serious KORS decrease. With 7,516 contracts traded and 634 open interest for the Dec, 16 contract, it seems this is a quite bearish bet. The option with symbol: KORS161216P00050000 closed last at: $3.2 or 20% down. About 1.11 million shares traded hands. Michael Kors Holdings Ltd (NYSE:KORS) has declined 10.71% since March 30, 2016 and is downtrending. It has underperformed by 13.72% the S&P500.

Analysts await Michael Kors Holdings Ltd (NYSE:KORS) to report earnings on November, 2. They expect $0.88 EPS, down 12.87% or $0.13 from last year’s $1.01 per share. KORS’s profit will be $150.69 million for 14.82 P/E if the $0.88 EPS becomes a reality. After $0.88 actual EPS reported by Michael Kors Holdings Ltd for the previous quarter, Wall Street now forecasts 0.00% EPS growth.

Michael Kors Holdings Ltd (NYSE:KORS) Ratings Coverage

Out of 19 analysts covering Michael Kors Holdings Ltd (NYSE:KORS), 4 rate it a “Buy”, 1 “Sell”, while 14 “Hold”. This means 21% are positive. $65 is the highest target while $37 is the lowest. The $48.82 average target is -6.39% below today’s ($52.15) stock price. Michael Kors Holdings Ltd has been the topic of 41 analyst reports since July 21, 2015 according to StockzIntelligence Inc. Citigroup upgraded it to “Neutral” rating and $55 target price in Wednesday, February 3 report. Piper Jaffray maintained the shares of KORS in a report on Monday, August 3 with “Neutral” rating. The firm has “Overweight” rating by Piper Jaffray given on Wednesday, April 27. The firm earned “Market Perform” rating on Wednesday, February 3 by Telsey Advisory Group. The stock of Michael Kors Holdings Ltd (NYSE:KORS) earned “Neutral” rating by Bank of America on Thursday, October 22. On Thursday, August 11 the stock rating was maintained by Goldman Sachs with “Neutral”. The firm earned “Neutral” rating on Friday, January 22 by Mizuho. On Tuesday, January 19 the stock rating was upgraded by Piper Jaffray to “Neutral”. The firm earned “Hold” rating on Thursday, November 5 by Canaccord Genuity. As per Thursday, May 12, the company rating was maintained by Canaccord Genuity.

According to Zacks Investment Research, “Michael Kors is a global accessories, footwear and apparel company. They offer two primary collections: the Michael Kors luxury collection and the MICHAEL Michael Kors accessible luxury collection. They also offer select footwear and outerwear through their KORS Michael Kors accessible luxury collection. They operate their business in three segments-retail, wholesale and licensing-and have a global distribution network focused on company-operated retail stores, leading department stores, specialty stores and select licensing partners.”

Insitutional Activity: The institutional sentiment increased to 1 in Q2 2016. Its up 0.11, from 0.89 in 2016Q1. The ratio is positive, as 61 funds sold all Michael Kors Holdings Ltd shares owned while 142 reduced positions. 48 funds bought stakes while 155 increased positions. They now own 154.37 million shares or 6.71% more from 144.66 million shares in 2016Q1.
Moreover, State Street Corp has 0.04% invested in Michael Kors Holdings Ltd (NYSE:KORS) for 8.22M shares. Ubs Asset Mngmt Americas has invested 0.03% of its portfolio in Michael Kors Holdings Ltd (NYSE:KORS). Federated Invsts Pa holds 0.02% or 130,671 shares in its portfolio. Morgan Stanley holds 7.44 million shares or 0.13% of its portfolio. Hartford Management Com, a Connecticut-based fund reported 46,968 shares. Ellington Mgmt Group Limited Liability Company has 0.43% invested in the company for 6,300 shares. Jane Street Grp Lc last reported 0% of its portfolio in the stock. Fund Management holds 0.17% or 370,884 shares in its portfolio. First Quadrant Limited Partnership Ca accumulated 433,500 shares or 0.47% of the stock. The New York-based Sg Americas Secs has invested 0% in Michael Kors Holdings Ltd (NYSE:KORS). Janney Montgomery Scott Lc accumulated 6,695 shares or 0% of the stock. Kanaly Trust holds 0% of its portfolio in Michael Kors Holdings Ltd (NYSE:KORS) for 34 shares. Hightower reported 68,583 shares or 0.04% of all its holdings. Duncker Streett & reported 275 shares or 0% of all its holdings. Louisiana State Employees Retirement last reported 0.03% of its portfolio in the stock.

Insider Transactions: Since June 8, 2016, the stock had 0 buys, and 5 insider sales for $5.77 million net activity. On Wednesday, June 8 the insider Sporn Lee S. sold $3.84M. Shares for $332,265 were sold by Robinson Cathy Marie on Monday, June 13.

Michael Kors Holdings Limited is a designer, marketer, distributor and retailer of branded women’s apparel and accessories and men’s apparel bearing the Michael Kors tradename and related trademarks MICHAEL KORS, MICHAEL MICHAEL KORS, and various other related trademarks and logos. The company has a market cap of $8.93 billion. The Firm operates through three divisions: retail, wholesale and licensing. It has a 11.81 P/E ratio. The Retail activities consist of collection stores and lifestyle stores, including concessions and outlet stores, located primarily in the Americas , Europe and Asia, as well as e-commerce.

More news for Michael Kors Holdings Ltd (NYSE:KORS) were recently published by: Businesswire.com, which released: “Michael Kors Holdings Limited Announces Reporting Date for Second Quarter …” on October 20, 2016. Nasdaq.com‘s article titled: “Commit To Purchase Michael Kors Holdings At $27.50, Earn 5.3% Using Options” and published on October 20, 2016 is yet another important article.

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